PSE funds surge in 2015, still below target

MANILA, Philippines – The Philippine Stock Exchange (PSE) in 2015 marked its second highest year for capital raising activities, but fell short of its P200-billion ($4.26-billion) target, mainly because of global financial market volatility.

Capital raising activities at the PSE – including initial public offerings (IPOs), follow-on offerings, and private placements – surged 20.9% in 2015 to P184.60 billion ($3.94 billion), from the P153.08 billion ($3.26 billion) recorded in 2014.

The figure, however, was below the P200 billion ($4.26 billion) earlier targeted by the PSE.

“We expect that the stock market will continue to be a preferred venue for fund-raising activities of both listed companies and privately-owned firms that are considering listing at the Exchange,” PSE President and CEO Hans Sicat said.

Sicat earlier said he expects 8 to 10 companies to conduct IPOs this year. 

But only 4 companies debuted on the local bourse.

These are plastic compound and pipe manufacturer Crown Asia Chemicals Corporation; chemical trading and distribution firm SBS Philippines Corporation; local retailer Metro Retail Stores Group Incorporated; and boutique property developer Italpinas Development Corporation.

Meanwhile, 7 firms have pending IPO applications:

• Datem Incorporated at P4.65 billion ($99.17 million);
• DM Wenceslao & Associates Incorporated at P12.3 billion ($263.32 million);
• Pointwest Technologies Corporation at P2.09 billion ($44.57 million);
• TVI Resource Development Philippines Incorporated at P1.51 billion ($32.20 million);
• Philippine Primark Properties Incorporated at P1.2 billion ($25.59 million);
• Gweilo Corporation at P95 million ($2.03 million);
• Philstocks Financial Incorporated at P188 million ($4.01 million); and
• Green Power Panay Philippines Incorporated at P290 million ($6.18 million).

Ongoing initiatives

The PSE’s Sicat said his office is also working on its request to acquire 95% stake in the Philippine Dealing System Holdings Corporation to be granted by the Securities and Exchange Commission.

The PSE said it will continue its corporate governance initiatives, including the PSE Bell Awards. 

It has also started working with the Public-Private Partnership (PPP) Center to find ways for the stock market to be a venue to raise capital for PPP projects. (READ: PH’s PPP thrust: Work in progress)

The PSE said it will also continue to conduct its various market education and financial literacy programs.

“We look at 2016 with optimism and we hope market indicators will improve next year. We expect that the country’s solid macro-economic fundamentals will continue to drive stock market growth, aided by election-related and infrastructure spending,” Sicat said.

The PSE index (PSEi) ended the year at 6,952.08, lower by 3.85% from its closing level in 2014.

The market’s average daily turnover was also slightly higher, up by 1.8% to P8.96 billion ($191.08 million) in 2015 from P8.80 billion ($187.67 million) in 2014. – Rappler.com

$1=P46.89

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